What is the 4% rule?
The 4% rule is a general rule of thumb used by financial experts to determine how much individuals should be withdrawing from their retirement account each year. This is considered a safe and sustainable rate for a retiree with a long life expectancy.
Is the 4% rule feasible?
In a high interest rate environment, generating four percent of income from your retirement nest egg could be achieved. With today’s low bond, Treasury Bill, CD, and money market rates, retirees have been forced to use other alternatives. These alternatives typically require investors to reduce their retirement savings each year. Or they rely on mutual fund investments to attempt to increase their portfolio and provide income and yet, they are not aware of the fees being accrued no matter the rate of success or failure of the mutual fund.
Is there a better investment alternative?
Absolutely! We at the 4 Percent Portfolio have a better, more intelligent way of investing for retirement. An investing strategy that Wall Street would rather you not know about as this investing philosophy will make you a wealthier person and not them.